I know that some will point to the bad stock market, down nearly 40% depending which index you follow, as a confirmation of the value of gold in one’s portfolio. First, a look at the gold ETF chart for the past year;
Gold was up 4.9% last year. Only slightly better than CDs, and worse than longer term Treasuries as interest rates fell dramatically, and bonds rose. I’ll admit that gold has had a good run in the last 4 years or so, but go back to the last time it ran up, 1980, and you’d find that you are now at breakeven, 28 years later. How come no gold bugs ever said “sell” during any of these three decades?